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1. One Executive Engineer of the Tamil Nadu State Electricity Board made a surprise inspection of the premises of first respondent -Rasipuram Textile Mills. Allegedly, theft of electrical energy was detected.

2. A criminal prosecution was lodged not only against the company but also against its Managing Director and other Directors purported to under Section 39(1) and 44(1)(c) of the Indian Electricity Act, 1910.

3. Learned trial Judge, recorded a judgment of conviction against the accused. So far as the Directors of the Company are concerned, the learned trial Judge convicted despite noticing the provisions contained in Section 49A of the Indian Electricity Act, 1910, observing: